LY, Bain sweeten bid to value Japan's Kakaku at $4 billion, topping EQT offer
The Bain Capital logo is seen in this illustration taken February 4, 2026. REUTERS/Dado Ruvic/Illustration
TOKYO, May 14 : SoftBank's LY Corp said on Thursday it and Bain Capital have lifted their bid for Kakaku.com, valuing the price comparison website operator at $4 billion and above a rival offer from Swedish investment firm EQT.
Describing Kakaku's businesses as having "extremely high strategic value" given the rise of generative artificial intelligence, LY, which owns the Line messaging app and Yahoo Japan, said they were now offering 3,232 yen per share in an all-cash deal.
That is 7.7 per cent higher than their earlier bid of 3,000 yen per share.
A tender offer launched on Wednesday by EQT that aims to take the business private and which has the unanimous backing of Kakaku's board also values the company at 3,000 yen per share.
EQT said it remains confident in the attractiveness of its live, legally binding offer.
It believes it would bring "execution certainty, relevant sector expertise and a long-term perspective to support the company's next phase of growth," a spokesperson told Reuters.
Kakaku, which operates price comparison site Kakaku.com, restaurant review and reservation platform Tabelog and job search service Kyujin Box, did not respond to a request for comment.
SHARES SUGGEST BIDDING WAR MIGHT CONTINUE
Shares in Kakaku rose 0.7 per cent to 3,450 yen in afternoon trade, indicating that some investors expect the bidding war could run further.
Shares in LY, which is part of the SoftBank tech investment conglomerate, were down 2.2 per cent.
Japanese companies have increasingly become targets for overseas investors as governance reforms encourage firms to rethink their capital structure and become more open to going private.
Last year, in what was considered a milestone for M&A in Japan, two global private equity firms battled to take over software developer Fuji Soft, with KKR ultimately winning out over Bain.
While the government is encouraging M&A activity, authorities are also increasing scrutiny of deals amid concern about the targeting of firms by activist investors and foreign acquirers.
Companies are not obliged to accept unsolicited takeover bids even when offered large premiums, a government official said in February.
Digital Garage and KDDI, which together hold 38.1 per cent of Kakaku, agreed to sell their shares in the EQT tender offer. KDDI declined to comment. Digital Garage did not respond to a request for comment.
